An increase, reduction, or any other change in the authorized capital of a company (see share capital). If permitted by the articles of association, a limited company can increase its authorized capital as appropriate. It can also rearrange its existing authorized capital (e.g. by consolidating 100 shares of £1 into 25 shares of £4 or by subdividing 100 shares of £1 into 200 of 50p) and cancel unissued shares. These are reserved powers, passed – unless the articles of association provide otherwise – by an ordinary resolution. See also reduction of capital.
Subjects: Financial Institutions and Services.